SEALSQ Strengthens Its U.S. Post-Quantum Semiconductor Footprint with SEALSQ USA

Rhea-AI Summary

SEALSQ Corp (NASDAQ: LAES) has announced plans to strengthen its U.S. presence through the establishment of a semiconductor manufacturing facility via SEALSQ USA. The company will focus on post-quantum microchip production with strategic operations in Arizona and New York.

The expansion includes a planned Outsourced Semiconductor Assembly and Test (OSAT) center offering wafer probing, final testing, advanced assembly solutions, and reliability testing. The OSAT facility will be important for creating a self-sustaining U.S. semiconductor ecosystem.

The company has already incorporated SEALSQ USA in Arizona, which will house its OSAT and manufacturing operations. A New York office is planned for Q2 2025. This expansion aligns with U.S. efforts to reduce foreign supply chain dependence and responds to proposed tariffs on imported semiconductors.

Positive

• Strategic expansion into key U.S. semiconductor hubs (Arizona and New York)
• Planned establishment of domestic OSAT facility enhancing U.S. semiconductor self-sufficiency
• Alignment with U.S. government initiatives to reduce foreign semiconductor dependence

Negative

• None.

Insights

Semiconductor Industry Analyst

SEALSQ's strategic expansion into U.S. semiconductor manufacturing through SEALSQ USA represents a calculated move to capitalize on the $52.7 billion CHIPS Act initiative and growing concerns over semiconductor supply chain security. The planned OSAT facility positions SEALSQ at the intersection of two critical market trends: domestic semiconductor production and post-quantum cryptography.

The selection of Arizona and New York as operational hubs is particularly strategic. Arizona's established semiconductor ecosystem, anchored by major players like Intel and TSMC, provides immediate access to skilled workforce and supplier networks. New York's proximity to financial markets and research institutions, particularly the Albany NanoTech Complex, offers valuable R&D partnerships and funding opportunities.

The timing is particularly opportune given three key factors:

• Proposed tariffs on imported semiconductors creating immediate market opportunities for domestic producers
• Growing demand for quantum-resistant solutions as quantum computing threatens current encryption standards
• Federal initiatives prioritizing domestic semiconductor manufacturing

However, investors should note several critical considerations:

• Establishing OSAT facilities requires substantial capital investment, typically ranging from $300 million to $1 billion
• The semiconductor industry faces skilled labor shortages, potentially impacting operational timelines
• Competition from established OSAT providers and larger semiconductor manufacturers could pressure margins

SEALSQ's focus on post-quantum technology provides a unique value proposition in the crowded semiconductor space. Their specialization in quantum-resistant microchips addresses a growing market need, as organizations prepare for the quantum threat to current cryptographic systems. However, the success of this expansion will largely depend on execution capability, access to capital and ability to secure key customers in the defense and critical infrastructure sectors.

Geneva, Switzerland, Jan. 30, 2025 (GLOBE NEWSWIRE) --

The objective is to support U.S. efforts to onshore semiconductor production and reduce reliance on foreign supply chains

Arizona & New York to serve as strategic hubs for post-quantum microchip production

SEALSQ Corp (NASDAQ: LAES) ("SEALSQ" or "Company"), a company specializing in Semiconductors, PKI, and Post-Quantum technology hardware and software products, today reaffirms its commitment in strengthening its footprint in the U.S. via the planned establishment of a semiconductor manufacturing facility, through the expansion of SEALSQ USA. This initiative is expected to be a pivotal step in reinforcing the U.S. semiconductor supply chain by enabling the domestic production of cutting-edge post-quantum microchips.

Expanding OSAT Operations in the U.S.

SEALSQ USA’s expansion includes the planned establishment of a dedicated Outsourced Semiconductor Assembly and Test (OSAT) center, a critical move aiming to enhance the country’s semiconductor self-sufficiency. This OSAT facility is intended to deliver comprehensive semiconductor packaging, testing, and final assembly services, ensuring a robust and secure semiconductor production ecosystem within the U.S.

Key OSAT capabilities would include:

1. Wafer probing and final testing to ensure the highest quality standards in microchip production.
2. Advanced assembly solutions such as QFN, BGA, and WLCSP packaging to support diverse industry applications.
3. Reliability and qualification testing to meet the stringent security and performance requirements for quantum-resistant microchips.
   
   

The OSAT facility is expected to play a crucial role in securing a resilient and self-sustaining U.S. semiconductor ecosystem.

SEALSQ intends to strategically position its U.S. operations in Arizona and New York, two key regions driving semiconductor innovation:

1. Arizona: Already a semiconductor hub, Arizona offers an established infrastructure and workforce to support SEALSQ’s OSAT and manufacturing operations.
2. New York: Set to house SEALSQ’s office by Q2 2025, New York provides access to financial and technological resources to accelerate market deployment and industry partnerships.

SEALSQ has already incorporated SEALSQ USA in the state of Arizona with the intent of using this entity to house its OSAT and manufacturing operations. SEALSQ’s U.S. expansion aligns with overall efforts to onshore semiconductor production and reduce reliance on foreign supply chains. With evolving U.S. policies, including proposed tariffs on imported semiconductors, the demand for domestically produced, quantum-secure chips, is more urgent than ever. SEALSQ is poised to meet this demand by delivering next-generation, quantum-resistant semiconductor solutions that protect critical infrastructure, defense systems, and commercial applications worldwide.

As quantum computing continues to evolve, SEALSQ remains at the forefront of post-quantum cybersecurity and semiconductor innovation. With the aim to expand its OSAT operations and reinforce its U.S. presence, SEALSQ is looking to actively shaping the future of secure semiconductor technology, ensuring the development of resilient, cutting-edge solutions for a quantum-secure world.

About SEALSQ:
SEALSQ focuses on selling integrated solutions based on Semiconductors, PKI and Provisioning services, while developing Post-Quantum technology hardware and software products. Our solutions can be used in a variety of applications, from Multi-Factor Authentication tokens, Smart Energy, Smart Home Appliances, Medical and Healthcare and IT Network Infrastructure, to Automotive, Industrial Automation and Control Systems.

Post-Quantum Cryptography (PQC) refers to cryptographic methods that are secure against an attack by a quantum computer. As quantum computers become more powerful, they may be able to break many of the cryptographic methods that are currently used to protect sensitive information, such as RSA and Elliptic Curve Cryptography (ECC). PQC aims to develop new cryptographic methods that are secure against quantum attacks. For more information, please visit www.sealsq.com.

Forward-Looking Statements
This communication expressly or implicitly contains certain forward-looking statements concerning SEALSQ Corp and its businesses. Forward-looking statements include statements regarding our business strategy, financial performance, results of operations, market data, events or developments that we expect or anticipates will occur in the future, as well as any other statements which are not historical facts. Although we believe that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates which are inherently subject to significant uncertainties and contingencies, many of which are beyond our control. Actual results may differ materially from those expressed or implied by such forward-looking statements. Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the expected success of our technology strategy and solutions for IoMT Security for Medical and Healthcare sectors, SEALSQ's ability to implement its growth strategies, SEALSQ's ability to continue beneficial transactions with material parties, including a limited number of significant customers; market demand and semiconductor industry conditions; and the risks discussed in SEALSQ's filings with the SEC. Risks and uncertainties are further described in reports filed by SEALSQ with the SEC.

SEALSQ Corp is providing this communication as of this date and does not undertake to update any forward-looking statements contained herein as a result of new information, future events or otherwise.

SEALSQ Corp. Carlos Moreira Chairman & CEO Tel: +41 22 594 3000 info@sealsq.com

SEALSQ Investor Relations (US) The Equity Group Inc. Lena Cati Tel: +1 212 836-9611 lcati@equityny.com

FAQ

What are SEALSQ's (LAES) plans for U.S. semiconductor manufacturing expansion?

SEALSQ plans to establish a semiconductor manufacturing facility and OSAT center in the U.S., with operations in Arizona and New York, focusing on post-quantum microchip production.

When will SEALSQ (LAES) open its New York office?

SEALSQ plans to open its New York office by Q2 2025.

What capabilities will SEALSQ's (LAES) new OSAT facility offer?

The OSAT facility will offer wafer probing, final testing, advanced assembly solutions (QFN, BGA, WLCSP packaging), and reliability testing for quantum-resistant microchips.

How does SEALSQ's (LAES) expansion align with U.S. semiconductor policies?

The expansion aligns with U.S. efforts to onshore semiconductor production and reduce foreign supply chain dependence, particularly in light of proposed tariffs on imported semiconductors.